- Trump calls China's Xi tough, 'hard to make a deal with'
- Gold may trade in $3,300-$3,400 range in short term - analyst
June 4 (Reuters) - Gold prices held steady on Wednesday as stronger U.S. jobs data countered safe-haven demand driven by simmering trade tensions between the U.S. and China.
Spot gold was steady at $3,349.19 an ounce, as of 1145 GMT. U.S. gold futures were unchanged at $3,373.10.
"U.S. labor data gave markets a bit of relief yesterday, causing a small dip in gold prices. However, tensions between the U.S. and China are still keeping risks high and gold prices supported," said Zain Vawda, market analyst at MarketPulse by OANDA.
Job openings in the U.S. rose in April, though layoffs surged to their highest level in nine months, economic data showed, hinting at softening labor market conditions.
Donald Trump said on Wednesday that Chinese President Xi Jinping is tough and "extremely hard to make a deal with," days after the U.S. President accused China of violating an agreement to roll back tariffs and trade restrictions.
Washington doubled its tariffs on steel and aluminium imports on Wednesday, the same day the Trump administration expects trading partners to make "best offers" to avoid other punishing import levies from taking effect in early July.
The focus will be on Friday's U.S. non-farm payrolls data for more cues on the Federal Reserve's policy path. Federal Reserve's policy path. Fed officials have reiterated their cautious policy stance, citing risks from trade tensions and economic uncertainty.
"If the data is stronger than expected, interest rate cut expectations are likely to wane, which would weigh on the gold price," said Commerzbank analyst Carsten Fritsch.
"We see gold trading in a range between $3,300 and $3,400 per troy ounce in the short term."
Gold, a safe-haven asset during times of political and economic uncertainty, tends to thrive in a low-interest-rate environment.
Elsewhere, spot silver fell 0.5% to $34.32 an ounce, platinum rose 1.1% to $1,085.50 and palladium lost 0.5% to $1,005.11.
Reporting by Brijesh Patel and Anushree Mukherjee in Bengaluru; Editing by Eileen Soreng, Shailesh Kuber and Maju Samuel
Source: Reuters